Amul b.env Mailed

8/14/2019 Amul b.env Mailed

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NDIANNDIANCOMPANYOMPANY


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A M U LM U L
http://en.wikipedia.org/wiki/File:Amulbutter.JPGhttp://en.wikipedia.org/wiki/File:AmulCheese.JPG


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Amul (AMUL means "priceless" inSanskrit. The brand name "Amul,"from the Sanskrit "Amoolya," was

suggested by a quality controlexpert in Anand.)


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Amul was formed in1946.

It is a dairy cooperative in India.

It is a brand name managed be an apex

cooperative organisation. Gujarat Co-operative Milk Marketing

Federation Ltd. (GCMMF), which today

is jointly owned by some 2.8 millionmilk producers in Gujarat, India.


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GCMMF Today

GCMMF is India's largest food products marketing organisation. Itis a state level apex body of milk cooperatives in Gujarat,which aims to provide remunerative returns to the farmersand also serve the interest of consumers by providingaffordable quality products. GCMMF markets and managesthe Amul brand.

From mid-1990s Amul has entered areas not related directly to itscore business.

Its entry into ice cream was regarded as successful due to thelarge market share it was able to capture within a short periodof time - primarily due to the price differential and the brand

name. It also entered the pizza business, where the base and the

recipes were made available to restaurant owners who couldprice it as low as 30 rupees per pizza when the other playerswere charging upwards of 100 rupees.


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Company info

The Gujarat Cooperative Milk Marketing Federation Ltd, Anand (GCMMF) isthe largest food products marketing organisation of India. It is the apexorganization of the Dairy Cooperatives of Gujarat. T

Over the last five and a half decades, Dairy Cooperatives in Gujarat havecreated an economic network that links more than 2.8 million village milkproducers with millions of consumers in India and abroad through a

cooperative system t The turnover of GCMMF (AMUL) during 2008-09 was Rs. 67.11 billion. It

markets the products, produced by the district milk unions in 30 dairyplants, under the renowned AMUL brand name.

The combined processing capacity of these plants is 11.6 million litres perday, with four dairy plants having processing capacity in excess of 1million Litres per day.


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Ever since the movement was launched fifty-five years

ago, Gujarats Dairy Cooperatives have broughtabout a significant social and economic change toour rural people. The Dairy Cooperatives havehelped in ending the exploitation of farmers anddemonstrated that when our rural producers benefit,the community and nation benefits as well.

The Gujarat Cooperative Milk Marketing Federation Ltd.cannot be viewed simply as a business enterprise. Itis an institution created by the milk producers

themselves to primarily safeguard their interesteconomically, socially as well as democratically.


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The farmers of Gujarat own the largest state ofthe art dairy plant in Asia ,which can handle2.5 million litres of milk per day and process100 MTs of milk powder daily.

All its products are manufactured under themost hygienic conditions. All dairy plants of the unions are ISO 9001-

2000, ISO 22000 and HACCP certified. GCMMF (AMUL)s Total Quality Management

ensures the quality of products right from thestarting point (milk producer) through thevalue chain until it reaches the consumer.


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H E B I R T H O F A M U LN D D E V E L O P M E N T O F

N D I A S D A I R YO O P E R A T I V E

M O V E M E N T


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The birth of Amul at Anand provided the impetus to the cooperativedairy movement in the country.

The Kaira District Cooperative Milk Producers Union Limited wasregistered on December 14, 1946 as a response to exploitation of

marginal milk producers by traders or agents of existing dairies inthe small town named Anand (in Kaira District of Gujarat).

Milk Producers had to travel long distances to deliver milk to the onlydairy, the Polson Dairy in Anand. Often milk went sour as producershad to physically carry the milk in individual containers, especially inthe summer season.

Milk is a commodity that has to be collected twice a day from eachcow/buffalo. In winter, the producer was either left with surplus /unsold milk or had to sell it at very low prices.

India ranked nowhere amongst milk producing countries in the world in1946.

Angered by the unfair and manipulative trade practices, the farmers ofKaira District approached Sardar Vallabhbhai Patel (who laterbecame the first Deputy Prime Minister and Home Minister of freeIndia) under the leadership of the local farmer leader TribhuvandasPatel.


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Sardar Patel advised the farmers to forma Cooperative and supply milk directlyto the Bombay Milk Scheme instead ofselling it to Polson.

In 1946, the farmers of the area went ona milk strike refusing to be furtheroppressed.

Thus the Kaira District Cooperative wasestablished to collect and process milkin the District of Kaira in 1946.


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The success of the dairy co-operative movement spread rapidly in Gujarat. In orderto combine forces and expand the market while saving on advertising and avoida situation where milk cooperatives would compete against each other it was

decided to set up an apex marketing body of dairy cooperative unions inGujarat.

Thus, in 1973, the Gujarat Co-operative Milk Marketing Federation was established.The Kaira District Co-operative Milk Producers Union Ltd. which hadestablished the brand name AMUL in 1955 decided to hand over the brandname to GCMMF (AMUL). With the creation of GCMMF (AMUL),

This was possible due to the leadership of the founder Chairman of AMUL,

Tribhuvandas Patel and the vision of the father of the White Revolution, Dr.Verghese Kurien who worked as a professional manager at AMUL..

Dr. Verghese Kurien, the World Food Prize and the Magsaysay Award winner, is thearchitect of Indias White Revolution, which helped India emerge as the largestmilk producer in the world.

Impressed with the development of dairy cooperatives in Kaira District & its success,Shri Lal Bahadur Shastri, the then Prime Minister of India during his visit toAnand in 1964, asked Dr. V Kurien to replicate the Anand type dairycooperatives all over India. Thus, the National Dairy Developed Board wasformed and Operation Flood Programme was launched for replication of theAmul Model all over India.

I t t "A


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Impact o t e "AmuModel"

The effects of Operation Flood Programme are more appraised by the WorldBank in its recent evaluation report. Iend of Operation flood Programme.

Due to this movement, the countrys milk production tripled between the years1971 to 1996. Similarly, the per capita milk consumption doubled from111 gms per day in 1973 to 222 gms per day in 2000. Thus, thesecooperatives have not just been instrumental in economic development ofthe rural society of India but it also has provided vital ingredient forimproving health & nutritional requirement of the Indian society.

Very few industries of India have such parallels of developmentencompassing such a large population.

These dairy cooperatives have been responsible in uplifting the social &economic status of the women folk in particular as women are basicallyinvolved in dairying while the men are busy with their agriculture.

This has also provided a definite source of income to the women leading totheir economic emancipation.


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Development in India, theAnand Pattern hasdemonstrated the following

benefits:

The role of dairying in poverty reduction The fact that rural development involves more than

agricultural production The value of national ownership in development The beneficial effects of higher incomes in relieving the

worst aspects of poverty The capacity of dairying to create jobs


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Contd

The capacity of dairying to benefit the poorat low cost

The importance of getting government outof commercial enterprises The importance of market failure in

agriculture

The power & problems of participatoryorganisations The importance of policy


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1. The phenomenal growth of milk production in India from 20 million MT to 100million MT in a span of just 40 years - has been made possible onlybecause of the dairy cooperative movement. This has propelled India to

emerge as the largest milk producing country in the World today.2. The dairy cooperative movement has also encouraged Indian dairy farmers to

keep more animals, which has resulted in the 500 million cattle & buffalopopulation in the country - the largest in the World.

3. The dairy cooperative movement has garnered a large base of milk producers,with their membership today boasting of more than 13 million member

families.4. The dairy cooperative movement has spread across the length and breadth of

the country, covering more than 125,000 villages of 180 Districts in 22States.

5. The dairy cooperatives have been able to maintain democratic structure atleast at the grass-root level with the management committee of the

village level unit elected from among the members in majority of thevillages.

6. The dairy cooperatives have also been instrumental in bridging the socialdivide of caste, creed, race, religion & language at the villages, byoffering open and voluntary membership.


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Contd..7. The dairy cooperatives have been successfully propagating the

concepts of scientific animal husbandry & efficiency of operations, whichhas resulted in low cost of production & processing of milk.

8. The movement has been successful because of a well-developedprocurement system & supportive federal structures at District & Statelevels.

9. Dairy Cooperatives have always been proactive in building large

processing capacities, which has further propelled growth of milkproduction.

10. The dairy cooperatives are among those few institutions in India,which still cherish a strong Cooperative identity, values and purpose.They still boast of idealism & good will of members and employees.

11. The dairy cooperatives have removed the poor farmers of India fromthe shackles of agents & middlemen and provided an assured market for

their produce. As these are the institutions run by farmers themselves, ithas also resulted in fair returns to the members for their produce12. Dairy cooperatives have been able to create a market perception of

honesty & transparency with their clean management


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Products

Amul's product range includes milk powders, milk, ,butter,

Ghee, cheese, curd, chocolate, ice cream, cream,shrikhand, paneer, gulab jamuns, flavoured milk,basundi, Nutramul brand and others. In January

2006, Amul plans to launch India's first sports drinkStamina, which will be competing with CocaCola's Powerade and PepsiCo's Gatorade.

In August 2007, Amul introduced Kool Koko, achocolate milk brand extending its product offeringin the milk products segment. Other Amul brands

are Amul Kool, a low calorie thirst quenching drink;Masti Butter Milk; Kool Cafe, ready to drink coffeeand India's first sports drink Stamina.


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Advertising

An Amul butter ad on Pakistan's KargilWar fiasco. The image shows the"Amul baby" in between George

Fernandes and Atal Behari Vajpayee.
http://en.wikipedia.org/wiki/File:Amul63.jpg


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DIVERSIFICATION


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DIVERSIFICATION

In 1996, B M Vyas, Managing Director,GCMMF, commissioned the IndianMarket Research Bureau (IMRB) to

conduct a consumer survey to identifythe products consumers wanted fromAmul.

Based on the findings, Amul entered into

the following areas: ice cream, curd,paneer, cheese, and condensed milk.


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1997,

Amul launched ice creams after HindustanLever acquired Kwality, Milkfood andDollops. Positioned as the 'Real Ice-cream,'Amul Ice cream was one of the few milk-based ice creams in the market.

In August 1999, Amul launched brandedyoghurt in India for the first time, when it testmarketed "Masti Dahi" in Ahmedabad firstand then introduced it all over the country."Masti Dahi" was plain yoghurt sold in plastic

cups. Each 400 gm cup was priced at Rs 12.


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January 2000,

Amul re-enteredthe carton milk market[4] with thelaunch of "Amul Taaza" in Mumbai. Amul Taazawas non-sweetened, plain, low fat milk. Theproduct was positioned as a lifestyle as well asfunctional product. It was targeted at the uppermiddle class housewife who could use it fordifferent occasions. Amul was targeting sales ofabout 0.1 mn litres per day. In November 2000,Amul decided to promote mozzarella cheese,which was used in pizza. The growing demand formozzarella cheese from pizza making companieslike Pizza Hut and Domino's Pizza was expectedto give Amul's cheese sale an additional push.


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July 2001,

Amul planned to enter the instant coffee market through a tie-up withTata Coffee. GCMMF had a strong national distribution network whileTata Coffee had expertise in manufacturing and marketing coffee. Asa part of the tie-up, Amul was to source the instant coffee from TataCoffee and distribute it. The domestic coffee market was estimated atRs.11bn, with the instant coffee segment being around Rs.4.5bn.In August 2001, Amul decided to enter the ready-to-eat stuffedparatha[5] , cheeseburger, cheese and paneer pakoda[6] , and cheesesandwich segments. The products were to be marketed under theSnowCap brand. The SnowCap brand would also include tomatosauce and ketchup. Amul was also restructuring its chocolatesbusiness[7] . Seven of its brands that were withdrawn from the marketwere to be relaunched soon. Amul tied up with Campco, the cocoaand arecanuts farmers' cooperative in Karnataka and Kerala, for thesupply of cocoa beans[8] . Amul marketed Milklairs, which wasmanufactured by Campco. This tie-up was expected to help Amul in

the expansion of its chocolate business.


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WHYWHY

DIVERSIFY?DIVERSIFY?


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WHY DIVERSIFY?

With the liberalization of the Indian economy in the early 1990s, and the subsequententry of new players, there was a change in lifestyles and the food tastes of people.The new team that took over the management of the GCMMF in the mid-1990shoped to take advantage of the change.

The management adopted Total Quality Management (TQM) and set for itself higherbenchmarks (in terms of growth).

They also diversified the Amul portfolio, offering a range of food stuffs such as ketchup,jam, ice-cream, confectionaries, cheese, and shrikhand.

According to some analysts, this diversification was probably not entirely demand-driven. Being a cooperative, GCMMF was compelled to buy all the milk that wasproduced in Gujarat. And with milk production having increased since the mid1990s, GCMMF had to make use of additional milk, and hence the pressure tomake and market more and more processed-milk products.

Amul had to expand the consumption base of milk-based products in India. It planned tomake its products (butter and cheese) a part of the regular diet in most households.Amul launched its new products with the intention of increasing the offtake of itsbasic milk products, including cheese.

The pizzas were expected to increase the sale of its cheese. The entry into theconfectioneries market was another avenue for increasing milk consumption.


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This flurry of launches helped Amul broaden its appeal across allsegments. Price was an advantage that Amul enjoyed over itscompetitors. Amul's products were priced 20-40 % less than those ofits competitors. Analysts felt that Amul could price its products lowbecause of the economies of scale it enjoyed.

According to some analysts, Amul's obsession with keeping downmanpower costs and dealer commissions could be a weakness. Inice-creams for example, Amul's retail commission in Ahmedabad citywas 17.5% which was 10% lower than what competitors offered.They also pointed out that Amul might not have the financial musclethat multinationals had to achieve rapid growth.

However, all said and done, Amul seemed to be all set to make steadyprogress in the coming years with its products having become quitepopular in both rural and urban households. Said Vyas, "We'vehandled liberalization and globalization far better than ourtransnational rivals. It has made us fitter than ever."


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THANK

YOU


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THANK YOU

:BY SECTION E

NAME .ROLL NO

SANJAY SHARMA 51PRAVEEN KUMAR 42BHUSHAN SHARMA 11

MANAS RANJAN PATRAU 29REENA YADAV 48

Amul b.env Mailed

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